Insolvency regulator Insolvency and Bankruptcy Board of India (IBBI) has now stipulated that liquidators must submit the list of stakeholders —category-wise and on the basis of proof of claims submitted— in a liquidation process on the electronic platform of the Board for dissemination on its website.

This will have to be done apart from filing such a list with the Adjudicating Authority (NCLT) within fortyfive days from the last date for receipt of the claims.

IBBI also wants this electronic submission to be done to even ongoing liquidation cases besides those commencing after Thursday.

Vaibhav Gaggar, Managing Partner, Gaggar & Associates, said this latest IBBI move would ensure that the list of stakeholders would be available on the IBBI website and makes the system less cumbersome.

Aseem Chawla, Managing Partner, ASC Legal said " This move will help overcome issues as regards ensuring some levels of disclosure and transparency which always has been a matter of concern in liquidation proceedings, where some sub- standard practices have been observed. The notification suggests a time period of 45 days and the same should be widely publicised on electronic platform. It is all in all a welcome move”.

Raj Bhalla, Partner, MV Kini & Co, said that the IBBI has now discontinued the public announcement of the List of Stakeholders but the Liquidator has to submit the list electronically on the website of the IBBI for dissemination.

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